Impact of Remote Work in Technology and Professional Services

Cristian Diaz

Associate Director @ EY | Senior IT Leader & Mentor | Driving Digital Transformation & Empowering Next Generation IT Professionals

Published Mar 6, 2025

Since 2019, and especially from 2020 onwards, remote work (home office) has dramatically expanded in the global technology and professional services sectors. These knowledge-based industries, heavily reliant on digital tools, quickly adopted remote work during the COVID-19 pandemic. Below is an analysis of its impact on four key dimensions: productivity, employee well-being, business operations, and environmental impact, supported by recent data and reports.

Impact on Productivity

Remote vs. On-Site Productivity Comparison

Numerous studies have examined whether working from home reduces or improves performance. In general, the average productivity of remote work has proven to be comparable to office work and, in some cases, even slightly higher, provided that the right conditions are met.

For example, an experiment with 1,600 employees at the Chinese company Trip.com (published in Nature) found that those working from home two days a week were just as productive as their office-based colleagues and did not experience reduced promotion opportunities. Similarly, large-scale analyses in 2020 found that productivity remained stable or increased during the first months of mass remote work. A McKinsey report states that 41% of employees feel more productive working from home.

However, not all results are uniformly positive: in some cases, productivity temporarily decreased during the transition to remote work. For instance, at the Indian IT services company HCL Technologies, productivity dropped between 8% and 19% after the company moved to full remote work in 2020. This decline was attributed to a slight reduction in output despite an increase in working hours.

This study points to higher communication costs as the primary reason: employees spent more time in meetings and coordination, leaving fewer hours for uninterrupted work. This evidence suggests that the impact on productivity can vary depending on how remote work is managed.

Factors Affecting Remote Work Efficiency

Research suggests that performance in telework depends on multiple organizational and personal factors:

Type of Tasks: Individual tasks requiring deep focus can benefit from a quiet remote environment, while collaborative, creative, or highly interactive tasks may be less effective remotely. For example, Microsoft observed that with 100% remote work, teams became more siloed, with a ~25% reduction in cross-team collaboration, which could hinder innovation.
Technology and Tools: Having adequate technological infrastructure (high-speed internet, reliable devices, and collaboration software) is critical. Leading companies equipped their employees with secure VPNs, video conferencing tools, and cloud platforms to minimize technical friction. A 2020 survey found that 77% of employees working remotely at least a few days per month felt more productive due to these tools, enabling them to complete more tasks in the same or less time.
Home Workspace Setup: A dedicated workspace free from distractions improves efficiency. Employees with a quiet, ergonomic home office report better concentration than those working in shared spaces or experiencing frequent family interruptions. A study found that for less engaging tasks, home distractions could reduce productivity, while for creative work, a flexible environment may enhance it.
Motivation and Habits: Self-discipline and time management skills become more crucial in remote work. Self-driven employees tend to maintain or even increase their productivity, whereas others may struggle with procrastination without the structure of an office. Habits such as maintaining a fixed schedule, dressing for the workday, and taking active breaks help sustain efficiency.
Management and Communication Practices: Leadership plays a key role. Effective remote management (setting clear goals, frequent but non-intrusive communication, and trusting employees rather than micromanaging) enhances remote productivity. Conversely, poor management can lead to excessive meetings or unclear expectations, negatively impacting performance. Successful remote companies have adopted agile methodologies, extensive process documentation (e.g., GitLab publishes a detailed internal remote work manual), and asynchronous communication to reduce the need for real-time meetings.

Performance and Job Satisfaction

Several studies indicate that well-implemented remote work can increase job satisfaction without compromising performance. Controlled experiments have found slight improvements in individual performance metrics in hybrid or fully remote models, measured by workload volume (emails, calls, code produced, etc.) and even in supervisor-perceived quality.

Additionally, remote work is often associated with higher job satisfaction and engagement, indirectly benefiting productivity by reducing turnover. For example, in one company that implemented remote work, job satisfaction increased, and resignation rates dropped by 50% compared to pre-pandemic levels.

Similarly, a 2020 study found that remote employees were 10% more “engaged” in their work than office-based peers and reported 55% higher job satisfaction. This increased workplace happiness translates into lower intent to leave: global surveys indicate that 72% of employers believe remote work improves talent retention, and companies that allow it experience up to 25% lower turnover on average.

It is no surprise, then, that the option to work remotely has become a key factor in employee attraction and retention: nearly two-thirds of employees want to continue working remotely at least partially, and many prioritize this flexibility even over salary increases.

Conclusion on Productivity

In technology and professional services—where human capital is critical—well-managed remote work has allowed productivity to remain stable or even improve, while also increasing employee satisfaction.

Impact on Employee Well-Being

Work-Life Balance

One of the most significant contributions of remote work has been offering greater scheduling and geographical flexibility, helping many workers better balance their professional and personal lives. By eliminating daily commuting, valuable personal time is reclaimed: an employee who works remotely half the week saves, on average, the equivalent of 11 workdays per year in commuting time.

In fact, it is estimated that in the U.S. alone, remote workers collectively saved $90 billion in commuting costs after the pandemic, reflecting millions of hours previously lost in traffic. Many employees use this extra time for family, rest, or personal activities, significantly improving their quality of life.

Surveys indicate that 71% of remote workers say working from home helps them better balance work and personal life. Among the most valued benefits of telework, flexible scheduling is often ranked as the top advantage—in one survey, 40% of respondents cited schedule flexibility as the main benefit, followed by more time with family (14%) and the ability to choose their place of residence (30%).

In summary, remote work has enabled many professionals (especially parents, caregivers, and those with long commutes) to better manage their responsibilities and reduce the stress associated with daily rushes.

Physical and Mental Well-Being Benefits

Numerous indicators suggest that telework, when properly implemented, benefits employees' well-being. The ability to work from a comfortable and controlled environment can lead to reduced stress levels.

In fact, 80% of remote employees report lower workplace stress compared to their in-office counterparts. Similarly, they feel happier: in one survey, 84% of respondents stated that working remotely makes them happier, and a comparative study found that home-based employees had a 20% higher happiness index on average than those who work in an office.

In general, more than 90% of remote workers would recommend remote work to others and would like to continue with this model in the future.

From a physical standpoint, eliminating the daily commute also reduces fatigue and exposure to pollution. Additionally, many workers have taken advantage of flexibility to introduce healthier habits, such as taking active breaks, exercising during previously unavailable hours, or eating better (having access to a kitchen at home).

Medical studies conducted during the pandemic also highlighted a reduction in the spread of seasonal illnesses due to remote work, improving overall workforce health.

Challenges of Remote Work for Employee Health

However, these benefits are not evenly distributed, and remote work also presents important challenges for employee health:

Social Isolation and Loneliness

The office provides face-to-face interaction and a sense of community that is difficult to replicate virtually. Working from home can generate feelings of isolation, especially for those who live alone.

Approximately 15–20% of remote workers report “loneliness” as their biggest challenge in this work model. The lack of informal interactions (hallway chats, lunch with colleagues) can impact mood.

One study found that full-time remote work increased feelings of loneliness by 67 percentage points compared to working in an office.

This is particularly true among younger employees: Millennial and Gen Z workers tend to struggle more with social disconnection and may experience difficulties in learning and professional growth without in-person mentorship.

Difficulty Disconnecting and Extended Work Hours

When home becomes the office, the boundaries between work and personal life become blurred. Many employees find it challenging to “disconnect” at the end of the workday, feeling constantly available.

In the State of Remote Work survey, 27% of respondents identified “not being able to unplug after work” as their biggest challenge with telework.

This lack of boundaries can lead to longer working hours (the phenomenon of always being “on”), increasing the risk of burnout.

A 2021 study found that 69% of remote employees had experienced burnout symptoms that year. Causes include an overload of virtual meetings, difficulty taking breaks, and pressure to demonstrate productivity while working from home.

Impact on Mental Health

Related to the previous points, some studies suggest a slight increase in anxiety or depression among those who work entirely remotely compared to office-based employees.

For example, an analysis conducted during the pandemic found that 40% of fully remote employees showed symptoms of anxiety or depression, compared to 38% in hybrid workers and 35% in in-office employees.

Although the difference is not drastic, it is statistically significant.

Experts explain that factors such as isolation, excessive video meetings, and the difficulty in separating work from personal life can affect the mental state of some individuals.

It is important to note that remote work does not automatically “cure” workplace stress—deadlines, workload, and other pressures still exist. Some individuals may even feel increased anxiety due to a lack of in-person support or immediate feedback from supervisors.

For these reasons, not everyone prefers remote work: surveys show that around 5–8% of employees simply do not want to work from home, as they miss social interaction or feel that their home environment is not conducive to concentration.

Sedentary Lifestyle and Ergonomics

Another challenge is the physical impact of working from home. While commuting time is eliminated, there is a risk of becoming more sedentary if one remains seated at a desk all day.

Medical studies from 2020 reported a decrease in physical activity and an increase in screen time and sitting time among remote workers.

Additionally, not all employees had an ergonomic workstation at home initially—many improvised with laptops on dining tables, leading to an increase in complaints of back pain, neck strain, and other discomforts.

Companies have attempted to mitigate this by providing ergonomic guidelines and even stipends for home office furniture.

In the long term, maintaining healthy habits (active breaks, a good chair, exercise) is crucial for physical well-being in remote work.

Adaptations and Successful Strategies

Both employees and organizations have developed ways to overcome these challenges and maximize the benefits of remote work.

Technology and Ergonomic Support

Leading companies provide their teams with the necessary tools (equipment, software, secure connection) and support for home office setup. Many offer subsidies for internet costs or furniture and promote health practices such as active break campaigns and virtual gym memberships.

Communication and Company Culture

To combat isolation, businesses have introduced virtual social spaces (virtual coffee breaks, informal chat channels, video happy hours) and online team-building activities.

Some companies organize remote-friendly recreational activities and celebrations to maintain morale.

A critical element is structured asynchronous communication: fully remote companies like GitLab and Automattic emphasize documentation and written communication to reduce the need for constant meetings.

This approach allows employees across different time zones to collaborate without added stress.

In-Person Meetings and Company Retreats

Several remote-first companies have recognized the importance of complementing virtual work with occasional face-to-face interactions.

A notable case is Dropbox: after transitioning to a “Virtual First” model in 2020, they observed an unusual increase in employee turnover due to feelings of disconnection.

To address this, Dropbox introduced periodic company retreats and team meetups—which resulted in notable improvements in employee retention.

This example underscores how investing in occasional physical gatherings (quarterly or annual retreats) can strengthen team cohesion and company culture, making remote work more sustainable in the long run.

Mental Health Support

Recognizing the importance of emotional well-being, many employers have expanded mental health programs, offering online therapy, coaching, wellness days, and other resources to help employees manage stress.

Leaders are also encouraged to hold frequent one-on-one check-ins with their team members to provide personal support, identify challenges, and show empathy.

Final Thoughts on Wellbeing

When companies and employees adopt best practices, remote work can enhance quality of life—providing more personal time, less commute-related stress, and greater workplace happiness—while mitigating risks such as isolation and burnout.

The technology and professional services sectors have led the way in implementing these strategies, showcasing numerous success stories of resilient remote teams and satisfied employees.

Business Impact (Company and Commerce)

Changes in Operating Costs

The widespread adoption of remote work has led many companies to reassess their cost structures. A tangible advantage of home office setups is the reduction of fixed office expenses: rent, utilities (electricity, water, heating/cooling), maintenance, cleaning, catering, etc. With fewer employees working in person daily, companies can optimize or downsize their office spaces. In fact, in 2021, 68% of CEOs from major corporations planned to reduce office space in the future due to the rise of remote work.

Several corporations have already closed branches or entire office floors; for example, Nationwide Insurance consolidated multiple buildings into just four main offices, leaving thousands of employees permanently remote, saving on infrastructure. Even tech giants have taken similar measures: companies like Facebook, Twitter, and Microsoft announced that they would allow many employees to work remotely indefinitely post-pandemic, meaning much of their traditional office space could be sold or repurposed.

The potential savings are substantial. Joint analyses by Harvard and Stanford estimate that a hybrid model (working from home half the week) saves a typical company around $11,000 per employee per year, due to reduced real estate needs and overhead costs. In a fully remote setup, the savings would be even greater. Consulting firms estimate that companies can cut real estate costs by 20–30% with a mostly remote workforce.

Beyond real estate, there are also travel savings: in professional services, where business trips were once common for client meetings, many interactions now occur via video conferencing. This reduced travel and per diem expenses in 2020–2021, improving profit margins without significantly impacting client service.

On the other hand, new costs and investments have emerged: providing employees with laptops, monitors, collaborative software licenses, and enhanced cybersecurity measures, among others. However, these expenses are typically minor compared to office-related savings. Some companies also contribute to employees’ home internet or electricity costs, but these are relatively small amounts. Overall, about 6 in 10 employers cite cost savings as a significant benefit of remote work.

An executive summarized that adopting remote work is a way to “make the company structure more efficient”: instead of paying for square footage and commuting, investment is directed towards technology and employee well-being, which can result in equal or even greater productivity with fewer expenses.

Transformations in Business Dynamics and Models

Global Talent Attraction

Beyond financial figures, remote work has catalyzed profound changes in how tech and service companies operate and compete.

By decoupling work from a fixed location, companies can hire talent from anywhere in the world. This dramatically expands the available talent pool. According to a survey, 76% of companies recognize that they can now recruit without geographic limitations, increasing team diversity and capabilities.

For industries like technology, where the war for specialized talent is intense, this shift is a game-changer: a startup in Argentina can hire developers in India or designers in Spain, and a consulting firm in London can have analysts working from smaller cities without relocating them.

Many companies have leveraged this to hire specialists they wouldn’t have previously considered due to distance. Retaining talent is also easier when offering the flexibility to live anywhere—for example, if an employee decides to move cities, they can remain in the company remotely instead of quitting. This trend is already visible: after the pandemic, 34% of workers looking to switch jobs were doing so to find a remote-friendly position, and many companies have adjusted their policies to prevent such turnover.

Digital Culture and Collaboration

Organizations have had to adapt their culture and processes to a virtual environment.

The adoption of collaboration tools (chat-based operations, online project management, cloud-based integrated suites) has accelerated. Companies have also embraced extensive documentation of procedures, decisions, and knowledge in internal wikis or platforms, ensuring information is available asynchronously.

Communication has become more deliberate: in-person meetings have given way to scheduled video calls and written exchanges. This shift has forced companies to refine written communication skills and rely more on employee initiative, sometimes resulting in more horizontal structures.

Consulting firms, for example, developed methodologies to deliver fully virtual services (workshops with clients via Zoom, remote audits, etc.), something unimaginable years ago but proven effective.

Nevertheless, physical spaces are also being redefined: some firms are transforming traditional offices into collaboration “hubs” where employees occasionally gather for brainstorming sessions, training, or social events. This hybrid model requires coordination and maintaining team cohesion, but many companies see it as the future.

Business Continuity and Resilience

The pandemic demonstrated that remote work can be crucial for operational continuity during crises.

Companies with home office infrastructure were able to continue operating with minimal disruption during lockdowns. This highlighted the importance of being “remote-capable” for future contingencies (natural disasters, health crises, etc.).

Now, having cloud systems and a workforce accustomed to remote collaboration is considered a risk mitigation strategy. Some organizations have even incorporated “remote week” drills to ensure they can function without an office if necessary.

In the tech sector, this resilience even led to productivity improvements: a large-scale study found that in 43 industries analyzed, those with a higher proportion of remote work did not see a decline in productivity and even experienced slight growth in total factor productivity from 2019–2022, suggesting that the ability to operate remotely was a competitive advantage.

New Business Models

The rise of remote work has also created commercial opportunities.

A whole industry of remote work tools and services has flourished: video conferencing platforms (Zoom, Teams) experienced explosive growth, along with cybersecurity services, productivity monitoring software, virtual office solutions, etc.

Coworking spaces are adapting their offerings to serve as flexible locations for remote workers who occasionally need a space outside their home.

Meanwhile, established companies are experimenting with “remote-first” models. For example, Dropbox redefined its real estate strategy by creating “Dropbox Studios” (coworking-style spaces for occasional meetings) and declared that daily collaboration would remain virtual.

Similarly, Spotify launched “Work from Anywhere” policies, allowing employees to move to different countries while remaining locally employed, adjusting salaries based on the cost of living.

In consulting and professional services, firms are now offering fully online services, taking advantage of clients’ comfort with virtual interactions—this reduces travel costs and allows serving more clients in different locations.

Examples of Successful Remote Work Companies

Numerous organizations have successfully embraced remote work, serving as benchmarks for others.

In the tech sector, Automattic (the parent company of WordPress.com, WooCommerce, etc.) has been fully remote for years, with over 2,000 employees in 90+ countries. Automattic has thrived with this model, reaching a $3 billion valuation after attracting investment in 2019, proving that a fully remote team can scale globally.

Similarly, GitLab, a software development platform, operates with 2,000 employees across 65+ countries, fully remote. GitLab openly publishes its remote policies manual, fostering a culture centered on online collaboration and transparency, which helped it go public successfully in 2021.

Even in traditional enterprises, some departments—particularly technology, R&D, design, and data analytics—have opted to remain remote due to their efficiency.

In conclusion, remote work has evolved from a forced experiment in 2020 to a central piece of corporate strategy. Success stories demonstrate that, with the right cultural and technological investments, companies can enhance retention, expand their talent market, and stay competitive through remote work.

Ecological Impact

The massive shift to remote work also has significant environmental implications. In general terms, teleworking reduces the ecological footprint due to fewer commutes and adjustments in resource consumption, albeit with nuances. Below are the main effects:

Reduction in Carbon Emissions (Less Transportation)

The most direct and measurable impact of remote work is the decrease in CO₂ emissions linked to transportation. By avoiding millions of daily car, bus, or train trips, urban pollution notably decreased in 2020. Studies quantify this effect: research from Cornell University and Microsoft (2023) determined that a fully remote employee can have a ~54% lower carbon footprint than an in-office worker, primarily due to eliminating fuel consumption for commuting.

In a hybrid model, working from home 2 to 4 days per week reduces individual emissions by 11% to 29%.
On the other hand, working remotely just one day a week barely reduces emissions by ~2%, as many still drive most days.
At a macro level, an analysis in Spain by the Institute of Environmental Science and Technology suggested that implementing a 4-day telework week could reduce about 10% of the country's total CO₂ emissions.
Another report estimated that if all employees in telework-eligible jobs worked from home half of the time, the reduction in greenhouse gases would be equivalent to removing the entire workforce of New York State from the roads (in terms of commuting).

These figures illustrate the huge climate mitigation potential: less road traffic means fewer fossil fuels burned and less smog in cities. In fact, during the 2020 lockdowns, many major cities saw improved air quality, partly attributable to fewer vehicles during peak hours thanks to remote work.

Changes in Energy and Resource Consumption

Besides emissions from transportation, remote work alters energy consumption patterns.

Office buildings use less energy (fewer lights, less heating/cooling, and fewer running office equipment in empty skyscrapers).
However, part of that energy demand shifts to employees' homes (personal computers running all day, heating or air conditioning used more frequently).

Net result? It depends on local factors (climate, home energy efficiency, electricity sources), but many studies suggest that the overall effect is environmentally positive, though not neutral.

In mild climates, heating/cooling a single home office requires much less energy than a whole building, achieving net energy savings.
However, in extreme climates, multiple houses heating/cooling individually may consume more energy than a centralized office building.

"Remote work is not carbon neutral, and the benefits of hybrid work are not perfectly linear," summarizes Professor Fengqi You of Cornell, emphasizing that while commuting emissions decrease, lifestyle choices and home efficiency come into play.

For example:

Some remote workers move farther from city centers, increasing commute distances on office days.
Others make more local trips (errands, school runs, etc.), offsetting some transportation savings.
One study found that the more someone works from home, the more additional non-work outings they tend to make (leisure, errands), though these are usually more efficient and lower-impact than daily commuting.

Resource Consumption Effects

Teleworking reduces some resource use but also introduces new demands:

Less paper consumption (digital communication replaces printing).
Fewer office-related waste products.
Lower demand for single-use plastics (e.g., disposable coffee cups, takeout packaging).

However, setting up millions of home offices also had an impact:

Sales of home office furniture nearly quadrupled in some markets after 2020, increasing production and, eventually, waste.
Increased purchase of electronic devices (webcams, headsets, extra monitors), leading to potential e-waste if not properly managed.

These impacts, however, are considered manageable compared to the overall benefits. Many companies are implementing green remote policies, such as:

Recycling programs for employee-issued equipment.
Energy-saving recommendations for remote workers.

Overall Ecological Footprint

Summing up all factors, the emerging consensus is that remote work has a net positive environmental effect, primarily due to reduced motorized travel.

The World Economic Forum reported that remote work significantly contributed to the historic ~7% drop in global CO₂ emissions in 2020. Even after economic recovery, many companies maintain sustainability goals tied to telework, integrating it into carbon neutrality strategies by reducing:

Business travel.
Daily commuting emissions.

Additionally, remote work helps decongest cities and may enable more balanced urban development (fewer mega-offices, more vibrant local communities, lower urban environmental pressure).

Urban planners highlight that:

Less traffic = Less noise pollution + Less wear on infrastructure.
Lower social costs, such as fewer traffic accidents and less time lost in congestion.

The Need for Structural Changes

To maximize ecological benefits, remote work must be accompanied by structural changes.

For example:

If offices remain empty but still consume standby energy (lighting, HVAC to prevent building deterioration), part of the benefit is lost.
Many companies are resizing office spaces or implementing efficiency measures (e.g., closing entire floors when not in use).
Governments can promote telework-friendly policies, such as: Tax incentives for businesses reducing emissions. Investment in rural internet infrastructure to distribute population and environmental load.

Conclusion

The rise of remote work since 2019 has had largely positive environmental effects:

Lower carbon emissions from transportation.
Reduced urban pollution.
Resource savings in office environments.

However, new consumption patterns emerge at home. With smart planning, telework could become a powerful tool for sustainability goals and ecological footprint reduction, complementing other green initiatives.

A study estimates that working remotely 4 days per week could cut a developed country’s emissions by ~10%—a substantial impact in the fight against climate change.

Technology and professional services firms, with remote-first policies, are leading this transformation, proving that business objectives and environmental responsibility can align.